The supply and demand simulation provided an example of the market conditions by an apartment management company in the city of Atlantis that is impacted with numerous economic factors. The microeconomic concepts can be classified to the changes in supply, demand and equilibrium, in which the company makes decisions based on the changes of consumer and quantity supplied. On the macroeconomic, the concepts can be classified price ceilings and price elasticity, the both have a significant impact on the apartment market in Atlantis as a whole.
The microeconomic factor in the simulation displayed that a change in the demand curve or supply curve would cause significant changes to the economic setting. For example, in Atlantis, when a change of supply in the quantity of apartments increased, the price of rental decreased in demand at an equal rate. Therefore, the supply curve and the demand curve would shift to the right (see Figure 1). Another …show more content…
The concepts showed in the simulation can be easily link to the real world situation as in the smart phone industry. Recognizing the effects of supply and demand in microeconomic factors can optimize business performance and maximize profitability. Macroeconomic factor can help to forecast the business movement in a region to whole market. However, both microeconomic and macroeconomic concepts are important to the business decision-making. The simulation provided practical example to the economic conceptions that has increased my understanding of the insightful application of